TORONTO, ONTARIO--(Marketwire - April 28, 2011) - ENGINEERING.com Incorporated (TSX VENTURE:EGN), developer of the ENGINEERING.com online resource for engineers today announced its financial results for the fourth quarter and year ended December 31, 2010.
ENGINEERING.com revenue was $1,504,846 for the fiscal year 2010, compared to revenue of $1,433,566 for the year 2009. Sales of Internet advertising rose by 89% to 730,270 in 2010 compared to $386,250 for the year ended December 31, 2009. Paid advertising impressions (excluding remnant inventory allocated to networks) across all engineering related sites grew by approximately 83% from 23,352,790 in 2009 to 42,658,118 in 2010.
Revenue across all products for the three months ended December 31, 2010 was $461,905 compared to $489,163 for the fourth quarter of 2009. The net income for the year ended December 31, 2010 totaled $78,120 and $0.00 per Common Share compared with a net loss of ($482,794) and ($0.01) for the same period a year ago.
Operating loss (EBITDA) measured as earnings before interest, taxes, amortization and stock-based compensation, was ($29,670) or $0.00 per Common Share for the fourth quarter of 2010 compared with a operating profit of $7,099 or $0.00 per Common Share for the three month period ended December 31, 2009. Operating loss for fiscal 2010 was ($261,539) or ($0.01) per Common Share compared to an operating loss of ($259,247) or ($0.01) per Common Share for fiscal 2009. The operating expenses in the latest quarter were $299,179 and for the year were $1,146,047 compared to $289,323 for the fourth quarter a year earlier and $1,193,078 for fiscal 2009.
"During 2010 the company's primary web site experienced significant growth across all user and revenue metrics," said John Hayes, President of ENGINEERING.com. "Internet advertising revenue rose by 89% to $730,270, but was offset in part by a decline in software sales."
As at December 31, 2010, the Company had a cash balance of $78,244 compared to a cash balance of $106,118 as at December 31, 2009. This cash balance is relatively small when compared to the Company's ongoing obligations as described on page 7 of the Company's Third Quarter 2010 Management Discussion & Analysis under the heading, "Present Status and Risk Factors" as filed on November 22, 2010.
About ENGINEERING.com Incorporated
ENGINEERING.com Incorporated (TSX VENTURE:EGN) is the developer-owner of the www.ENGINEERING.com Web site and business. ENGINEERING.com offers marketing and lead generation services to manufacturers, design consultants and engineering academia around the world. The ENGINEERING.com Incorporated head office is located in Mississauga, Ontario, Canada and can be reached toll-free at 1-877-997-9917, by facsimile at 905-273-6691 or through the Internet at www.ENGINEERING.com.
EBITDA
EBITDA is defined by the Company as operating income before interest expense, income taxes, amortization, stock- based compensation, asset dispositions and provision for discontinued operations. The Company has included information concerning EBITDA because it believes that EBITDA is used by certain investors as one measure of the Company's financial performance. EBITDA is not a measure of financial performance under Canadian generally accepted accounting principles and is not necessarily comparable to similarly titled measures used by other companies. EBITDA should not be construed as an alternative to operating income or to cash flows from operating activities (as determined in accordance with Canadian generally accepted accounting principles) as a measure of liquidity.
Forward-Looking Statements
This press release may contain forward-looking statements based on management's current projections, beliefs and opinions at the date of this press release. Actual results could differ materially from those anticipated in these statements. The Company's ability to continue as a going concern is dependent upon its ability to generate future profitable operations and/or to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. ENGINEERING.com Incorporated undertakes no responsibility to update forward-looking statements if circumstances or management's projections, beliefs or opinions change.
The contents of this News Release have been reviewed and approved by the Audit Committee and the Board of Directors.
| ENGINEERING.com Incorporated | | | | |
| Balance Sheets | | | | |
| |
| (Cdn. $) | | | | |
| (audited) | | (audited) | |
| As at | | As at | |
| Dec. 31, 2010 | | Dec. 31, 2009 | |
| |
| ASSETS | | | | |
| Current Assets | | | | |
| Cash | 78,244 | | 106,118 | |
| Accounts Receivable | 316,302 | | 291,761 | |
| Prepaid Expenses and Deposits | 13,895 | | 30,391 | |
| | Total Current Assets | 408,441 | | 428,270 | |
| |
| Property and Equipment, net | 20,727 | | 27,916 | |
| Intangible Assets, net | 316,063 | | 412,993 | |
| | TOTAL ASSETS | 745,231 | | 869,179 | |
| |
| LIABILITIES AND SHAREHOLDERS' EQUITY | | | | |
| LIABILITIES | | | | |
| Current Liabilities | | | | |
| Accounts Payable and Accrued Liabilities | 489,015 | | 707,147 | |
| Deferred Revenue | 65,640 | | 46,614 | |
| Promissory Note | -- | | 24,999 | |
| | TOTAL LIABILITIES | 554,655 | | 778,760 | |
| |
| SHAREHOLDERS' EQUITY | | | | |
| Share Capital | 15,113,752 | | 15,113,752 | |
| Contributed Surplus | 439,996 | | 417,959 | |
| Deficit | (15,363,172 | ) | (15,441,292 | ) |
| | TOTAL SHAREHOLDERS' EQUITY | 190,576 | | 90,419 | |
| |
| | TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | 745,231 | | 869,179 | |
| | | | | | | | |
| | | | | | | | |
| ENGINEERING.com Incorporated | | | |
| Statements of Income | | | | | | | | |
| |
| (Cdn. $) | (unaudited) | | (unaudited) | | (audited) | | (audited) | |
| Three Months | | Three Months | | Year | | Year | |
| Ended | | Ended | | Ended | | Ended | |
| Dec. 31, 2010 | | Dec. 31, 2009 | | Dec. 31, 2010 | | Dec. 31, 2009 | |
| |
| Revenue | 461,905 | | 489,163 | | 1,504,846 | | 1,433,566 | |
| Cost of Sales | 192,396 | | 192,741 | | 620,338 | | 499,735 | |
| GROSS PROFIT | 269,509 | | 296,422 | | 884,508 | | 933,831 | |
| |
| Expenses | | | | | | | | |
| Salaries & Benefits | 131,275 | | 135,350 | | 536,272 | | 535,903 | |
| Marketing Expenses | 36,576 | | 18,803 | | 112,932 | | 86,905 | |
| Development Costs | 48,087 | | 55,528 | | 204,475 | | 263,067 | |
| General & Administrative | 83,241 | | 79,642 | | 292,368 | | 307,203 | |
| 299,179 | | 289,323 | | 1,146,047 | | 1,193,078 | |
| | | | | | | | |
| Operating Income/(Loss) before Under-noted | (29,670 | ) | 7,099 | | (261,539 | ) | (259,247 | ) |
| Items: | | | | | | | | |
| Stock Based Compensation | (5,950 | ) | (1,057 | ) | (22,037 | ) | (25,548 | ) |
| Amortization Expense | (3,364 | ) | (50,106 | ) | (119,828 | ) | (197,999 | ) |
| Vendor Reconciliation Adjustment | 481,524 | | 0 | | 481,524 | | 0 | |
| |
| Net Income (Loss) | 442,540 | | (44,063 | ) | 78,120 | | (482,794 | ) |
| | | | | | | | |
| |
| |
| Basic and Diluted (Loss) per Share | 0.01 | | (0.00 | ) | 0.00 | | (0.01 | ) |
| | | | | | | | |
| Weighted Average Number of Common Shares (basic and diluted) | 36,870,623 | | 36,870,623 | | 36,870,623 | | 35,638,235 | |
| |
| |
| Consolidated Statements of Deficit | | | | | | | | |
| Deficit, beginning of period | (15,805,712 | ) | (15,397,229 | ) | (15,441,292 | ) | (14,958,498 | ) |
| Net Income (Loss) | 442,540 | | (44,063 | ) | 78,120 | | (482,794 | ) |
| Deficit, end of period | (15,363,172 | ) | (15,441,292 | ) | (15,363,172 | ) | (15,441,292 | ) |
| | | | | | | | |
| | | | | | | | |
| ENGINEERING.com Incorporated | |
| Cash Flow Statements | | | |
| |
| (Cdn. $) | | | | | | | | |
| (unaudited) | | (unaudited) | | (audited) | | (audited) | |
| Three Months | | Three Months | | Year | | Year | |
| Ended | | Ended | | Ended | | Ended | |
| Dec. 31, 2010 | | Dec. 31, 2009 | | Dec. 31, 2010 | | Dec. 31, 2009 | |
| |
| OPERATING ACTIVITIES | | | | | | | | |
| |
| Net Loss | 442,540 | | (44,063 | ) | 78,120 | | (482,794 | ) |
| | ADD - Items Not Affecting Cash | | | | | | | | |
| | | Stock Based Compensation | 5,949 | | 1,057 | | 22,037 | | 25,548 | |
| | | Amortization | 3,364 | | 50,106 | | 119,828 | | 197,999 | |
| | Changes in operating assets and liabilities other than cash | (518,828 | ) | (82,329 | ) | (207,150 | ) | (221,416 | ) |
| |
| | CASH FROM OPERATING ACTIVITIES | (66,975 | ) | (75,230 | ) | 12,834 | | (480,663 | ) |
| |
| FINANCING ACTIVITIES | | | | | | | | |
| | | Promissory Notes | -- | | (13,317 | ) | (24,999 | ) | (62,436 | ) |
| | | Proceeds of Share issuance | -- | | -- | | -- | | 354,744 | |
| |
| | CASH FROM FINANCING ACTIVITIES | -- | | (13,317 | ) | (24,999 | ) | 292,308 | |
| |
| INVESTING ACTIVITIES | | | | | | | | |
| Additions to Property and Equipment | (1,694 | ) | (4,905 | ) | (8,494 | ) | (17,515 | ) |
| Additions to intangible assets | (1,101 | ) | -- | | (7,215 | ) | -- | |
| |
| | CASH FROM INVESTING ACTIVITIES | (2,795 | ) | (4,905 | ) | (15,709 | ) | (17,515 | ) |
| |
| Net Increase (Decrease) in Cash | (69,770 | ) | (93,452 | ) | (27,874 | ) | (205,870 | ) |
| |
| |
| CASH, beginning of period | 148,014 | | 199,570 | | 106,118 | | 311,988 | |
| |
| CASH, end of period | 78,244 | | 106,118 | | 78,244 | | 106,118 | |
The TSX Venture Exchange Inc. has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.